Introduction to

Hypothesis Testing
 Hypothesis Tests

A hypothesis test is a process that uses sample statistics to

test a claim about the value of a population parameter.

A verbal statement, or claim, about a population parameter

is called a statistical hypothesis.

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 Stating a Hypothesis
“H subzero” or “H naught”
A null hypothesis H0 is a statistical hypothesis that
contains a statement of equality such as , =, or .
“H sub-a”
A alternative hypothesis Ha is the complement of the null
hypothesis. It is a statement that must be true if H0 is false
and contains a statement of inequality such as >, , or <.

To write the null and alternative hypotheses, translate the

claim made about the population parameter from a verbal
statement to a mathematical statement.

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 Types of Errors

Actual Truth of H0
Decision H0 is true H0 is false

Do not reject H0 Correct Decision Type II Error

Reject H0 Type I Error Correct Decision

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 Statistical Tests
After stating the null and alternative hypotheses and
specifying the level of significance, a random sample is
taken from the population and sample statistics are
calculated.
The statistic that is compared with the parameter in
the null hypothesis is called the test statistic.

Population Test Standardized test

parameter statistic statistic
μ x z (n  30)
t (n < 30)
p p̂ z
2 s2 X2
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 Making a Decision
Decision Rule Based on P-value
To use a P-value to make a conclusion in a hypothesis test,
compare the P-value with .
1. If P  , then reject H0.
2. If P > , then fail to reject H0.

Claim
Decision Claim is H0 Claim is Ha
There is enough evidence to There is enough evidence to
Reject H0 reject the claim. support the claim.
There is not enough evidence There is not enough evidence
Do not reject H0 to reject the claim. to support the claim.

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Hypothesis Testing
for Proportions
z-Test for a Population Proportion
The z-test for a population is a statistical test for a
population proportion. The z-test can be used when a
binomial distribution is given such that np  5 and nq  5.

The test statistic is the sample proportion p̂ and the

standardized test statistic is z.

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 Formulas
Single Proportion:
If X is the number of success in independent bernouli
trails. Than the test statics

Double Proportion:
Than the test statics

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Hypothesis Test for Proportions
Using a z-Test for a Proportion p
Verify that np  5 and nq  5.
In Words In Symbols
1. State the claim mathematically State H0 and H1.
and verbally. Identify the null
and alternative hypotheses.
2. Specify the level of significance. Identify .
3. Sketch the sampling distribution.
4. Determine any critical values. Use Z Table to find
critical value of z.

Continued.
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Hypothesis Test for Proportions
Using a z-Test for a Proportion p
Verify that np  5 and nq  5.
In Words In Symbols
5. Determine any rejection regions.
6. Find the standardized test
statistic.
7. Make a decision to reject or fail to If z is in the rejection
reject the null hypothesis. region, reject H0.
Otherwise, fail to
8. Interpret the decision in the
reject H0.
context of the original claim.

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Hypothesis Test for Proportions
Problem 1 : One-Tailed Test
Statesville college claims that more than 94% of their
graduates find employment within six months of
graduation. In a sample of 500 randomly selected
graduates, 475 of them were employed. Is there enough
evidence to support the college’s claim at a 1% level of
significance?

Given:
p = 0.94  = 0.01
q = 1- p= 0.06
n = 500
X=475

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Hypothesis Test for Proportions
Verify that the products np and nq are at least 5
np = (500)(0.94) = 470 and nq = (500)(0.06) = 30

H0: p  0.94

H1: p > 0.94 (Claim)

It is a one-tailed test and,

0.95  0.94  0.94

 Test statistic
(0.94)(0.06) 500

Continued.
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Hypothesis Test for Proportions

0 2.33 z
z  0.94

Z = 0.94
Zα = 2.33
|Z| < |Zα|
The test statistic falls in the non rejection region,
so H0 is not rejected.

At the 1% level of significance, there is not enough evidence to

support the college’s claim.
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